The U.S. Department of Energy (DOE) has announced a restructuring of its agreement with Lithium Americas Corp. (LAC), with support from General Motors (GM), to strengthen taxpayer protections and advance domestic lithium production.
Under the revised terms, the federal government will receive 5% equity ownership in LAC through warrants, as well as an additional 5% stake in the LAC/GM joint venture. The DOE’s Loan Programs Office (LPO) uses warrants as part of its collateral package on loans to reduce repayment risk for taxpayers. The updated deal also includes more than $100 million in new equity and enhanced loan amendments designed to improve loan resilience.
The government’s increased stake is intended to further President Trump’s agenda on safeguarding taxpayer funds while supporting domestic manufacturing jobs and securing access to North America’s largest confirmed lithium deposit.
“Despite having some of the largest deposits, the United States produces less than 1% percent of the global supply of lithium. Thanks to President Trump’s bold leadership, American lithium production is going to skyrocket,” said U.S. Energy Secretary Chris Wright. “Today’s announcement helps reduce our dependence on foreign adversaries for critical minerals by strengthening domestic supply chains and ensures better stewardship of American taxpayer dollars. President Trump promised to do both and he is delivering.”
The original financial agreement between LPO and LAC was signed in October 2024. The restructured deal will help finance construction at Thacker Pass, where facilities are expected to produce about 40,000 tonnes per year of battery-grade lithium carbonate for use in lithium-ion batteries. This supports efforts to build U.S.-based supply chains for critical minerals.
DOE stated that it reviews every applicant and borrower thoroughly to ensure all taxpayer funds are used in the best interest of Americans. Warrants have previously been used by LPO in other high-profile loans, such as one provided to Tesla in 2010.
